The Nifty 50 index finds key support in the 25,450–25,500 zone while immediate resistance is placed at 25,750–25,800, according to Aakash Shah, technical research analyst, after the index ended lower on Thursday.
The index formed a bearish candle which remained contained inside previous session's high-low range, signaling consolidation with corrective bias ahead of the RBI monetary policy outcome, according to Bajaj Broking Research. In the coming sessions, key level to watch out for is 25,450-25,400, which is the confluence of last week's high and 20-day extended moving average, the brokerage said.
"Holding above the support area will keep the overall bias positive and will open upside towards 25,850 and 26,000 levels in the coming weeks," Bajaj Broking Research said.
"Volatility is likely to remain elevated amid uncertain global cues and the upcoming RBI monetary policy announcement. We believe the current breather should be viewed as a buy-on-dips opportunity," the brokerage said.
Nifty Bank
Resistance for the Bank Nifty index is seen at 60,300–60,400, while crucial support lies at 59,700–59,800, according to Aakash Shah.
Bank Nifty formed a small-bear candle which remained contained inside previous session price range, signaling consolidation amid stock specific action around the 60,000 levels ahead of the RBI monetary policy outcome, Bajaj Broking Research said.
The index has immediate support at 59,500-59,200 levels, which is the confluence of the 20- and 50-days EMA, as per the brokerage.
The key short-term support is placed in the 58,500–58,000 zone, which is the confluence of the 100 days EMA and the bullish gap area of Tuesday, Bajaj Broking said.
"The index holding above the support area will keep the bias positive and will open upside towards 60,700 and 61,200 levels in the coming weeks. Volatility is likely to remain elevated amid uncertain global cues and the upcoming RBI monetary policy announcement," it stated.
Market Recap
India's benchmark indices, Nifty and Sensex, ended lower on Thursday, ending three days of advances. The Nifty ended 133 points or 0.5% lower at 25,642 and the BSE Sensex tanked 506 points or 0.6% at 83,311. The broader market showed mixed performance with the Nifty Midcap 150 down 0.3% and Nifty Smallcap 250 down 1%.
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